Lemonade homeowners insurance

Overview

Lemonade is a New York-based insurtech that sells renters, condo, co-op and homeowners insurance, plus car, pet and term life, entirely through its app and website. Lemonade Insurance Company, a New York stock insurer, issues the property policies and pays the claims; Lemonade Insurance Agency sells them. The parent, Lemonade, Inc. (NYSE: LMND), is a public benefit corporation and a certified B Corp. The Lemonade Inc. Group ranked #47 among U.S. homeowners insurance groups by 2025 direct premiums written, with $517.0 million (0.27% of the national market), according to NAIC market share data.

That figure needs context. The NAIC homeowners multiple peril line includes renters and condo policies, and renters are Lemonade's largest customer base. The company reported $554 million of "homeowners multi-peril" in-force premium (home, condo and renters together) at June 30, 2026, with an average of $240 per customer, a number far below a typical house policy. Homeowners coverage on houses is a meaningful but smaller slice of a book that also includes fast-growing pet and car lines.

Lemonade is known for three things: an app-only experience run largely by AI, claims that can be approved in seconds, and the Giveback, which donates leftover premium to charities that policyholders choose.

History

Daniel Schreiber and Shai Wininger founded Lemonade in 2015, and it began selling renters and homeowners insurance in New York on September 21, 2016, after licensing a new carrier there. Expansion to other states followed. Lemonade priced its initial public offering at $29 a share on July 1, 2020, raising about $319 million, and began trading on the NYSE as LMND on July 2, 2020.

To build its car business, Lemonade acquired the pay-per-mile auto insurer Metromile in an all-stock deal that closed on July 28, 2022; Metromile Insurance Company remains one of its carriers. Lemonade has since expanded into Europe, including homeowners insurance in the Netherlands in 2025, and passed 3 million customers in January 2026. Schreiber is chief executive.

From 2024 the company deliberately shrank its catastrophe exposure in homeowners. In its second-quarter 2024 results it said it had begun nonrenewing certain catastrophe-exposed homeowners policies that it would not underwrite today, an effort expected to reduce in-force premium by $20 million to $25 million, and that it would place some home premium with other carriers in select areas.

Homeowners coverage

The Lemonade homeowners policy follows the familiar six-part structure: dwelling, other structures, personal property, loss of use, personal liability and medical payments to others. Personal property is covered "anywhere in the world" against the named perils in the policy and is settled at replacement cost, and Lemonade explains that it values a stolen item at what the same model costs new today. Property kept off premises in a storage unit is covered for theft up to $1,000, or 10% of Coverage C in New York, California and Connecticut. Your declarations page shows a separate hurricane deductible where one applies.

Extra Coverage is Lemonade's name for scheduled personal property. It is available for jewelry, fine art, cameras, bicycles and musical instruments, adds accidental loss and damage worldwide, and carries no deductible. It matters most for jewelry: the base policy caps jewelry at $1,500 in total. Earthquake insurance is offered to homeowners in California. Flood, earthquake (elsewhere), sinkholes, mold, wear and tear and neglected maintenance are excluded.

One practical point: Lemonade's site-wide legal disclosure says home insurance in a long list of states, including California and Texas, is underwritten by member companies of Homesite Group (see Homesite Insurance). Combined with the company's stated plan to place some home premium with other carriers, that means a homeowners quote obtained through Lemonade may not be a Lemonade Insurance Company policy. Check the insurer named on the quote and the declarations page, because that company handles the claim.

Discounts and savings

Lemonade lists discounts for bundling homeowners with Lemonade Car or Pet, paying the full annual premium up front, and protective devices such as smoke alarms, deadbolts and burglar alarms. A higher deductible lowers the price, and the company says homes in areas with less exposure to weather, crime or environmental losses cost less. Its homeowners page advertises policies "starting at $25/month," but the rate depends on the state, the home's age, construction and rebuilding cost; that starting figure is a marketing floor, not a typical house premium.

The Giveback is not a discount. Lemonade takes a flat fee, buys reinsurance and pays claims from the rest; whatever is left in each charity's peer group may be donated each year, at the board's discretion. It is never refunded to you.

Where it sells and recent market moves

Lemonade homeowners insurance is available in Arizona, California, Colorado, Connecticut, District of Columbia, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia and Wisconsin, according to its FAQ. Condo coverage adds Rhode Island and Washington. You cannot buy over the phone.

The retreat from catastrophe-exposed areas is the main thing to watch. In May 2025 Lemonade stopped writing new home and condo policies in 11 Texas counties (Angelina, Brazos, Ellis, Grayson, Gregg, Johnson, Potter, Randall, Tom Green, Travis and Williamson), and by late July 2025 Collin and Denton counties and the Abilene and Lubbock areas had been added; existing policies there run to expiration and are not renewed. The January 2025 Los Angeles wildfires cost Lemonade about $22 million in the first quarter of 2025, plus a $6.9 million California FAIR Plan assessment. Its July 2026 reinsurance renewal added named-storm protection, which its prior program excluded, and up to $40 million of catastrophe recovery per event.

Claims

Claims are filed in the Lemonade app with the "File a Claim" button, which asks for a description and often a short video statement. Lemonade says about 40% of claims are handled instantly by its AI and the rest go to human adjusters; approved claims are paid by direct deposit, minus the deductible. For emergencies such as a fire or ongoing water damage, an emergency response team calls back to arrange cleanup or temporary housing. Lemonade's phone line is 844-733-8666. Homeowners multi-peril gross loss ratio was 44% in the second quarter of 2026, down from 60% a year earlier.

Ratings and reputation

Lemonade Insurance Company holds a Financial Stability Rating of A (Exceptional) from Demotech, according to Lemonade's website as of October 2026; it does not cite an AM Best rating. Demotech's A is accepted by Fannie Mae and Freddie Mac. In J.D. Power's 2025 U.S. Home Insurance Study, Lemonade tied Liberty Mutual for 8th among renters insurers with 661 points, below the 668 segment average.

Lemonade is still loss-making: it reported a net loss of $21.7 million for the fourth quarter of 2025 while generating $36.7 million of adjusted free cash flow, and it is guiding to its first positive adjusted EBITDA quarter in the fourth quarter of 2026. That matters less to a policyholder than the carrier's capital and reinsurance, but it explains the company's focus on pricing and pulling back from catastrophe-prone areas.

Who it suits

Lemonade suits renters, condo owners and owners of lower-risk houses who want to buy, change and claim on a phone without talking to anyone, and who like the Giveback model. It suits less well owners of homes in wildfire, hurricane or hail-prone areas, where Lemonade has been nonrenewing and pulling back, people who want an agent, and anyone who prefers an AM Best-rated carrier.

• Strengths: fast, app-based buying and claims, with many simple claims paid instantly; replacement cost on belongings worldwide and deductible-free Extra Coverage for valuables; Demotech A (Exceptional) rating; Giveback to policyholder-chosen charities.
• Weaknesses: homeowners in only 23 states and D.C.; nonrenewals and new-business stops in catastrophe-exposed areas, including parts of Texas in 2025; no phone sales or agents; some home quotes are placed with other carriers such as Homesite.

How to contact Lemonade